Chapter 3 Homework Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Designing a Competitive Business Model and Building a Solid Strategic Plan ALL ANSWERS 100% SPRING FALL-2022 LATEST GUARANTEED GRADE A+

1) Which of the following is not one of the three components of intellectual capital? A) Human B) Structural C) Competitor D) Customer Answer: C Diff: 2 Page Ref: 87 AACSB: Analytic Skills Learning Obj.: 1 2) involves developing a game plan to guide a company as it strives to accomplish its mission, goals, and objectives to keep it on its desired course. A) Competitive advantage B) Mission C) Strategic management D) Market segmentation Answer: C Diff: 1 Page Ref: 88 AACSB: Analytic Skills Learning Obj.: 1 3) The aggregation of factors that sets a company apart from its competitors and gives it a unique position in the market, superior to its competition, is its: A) mission statement. B) competitive advantage. C) competitive profile. D) strategic plan. Answer: B Diff: 1 Page Ref: 88-89 AACSB: Analytic Skills Learning Obj.: 2 4) Which of the following was not identified as a way for the typical small business to establish a competitive advantage? A) Lowering prices B) Providing higher quality goods or services C) Improving customer service D) Doing whatever the company does for its customers better than its competitors Answer: A Diff: 2 Page Ref: 89 AACSB: Reflective Thinking Learning Obj.: 2 5) are a unique set of capabilities that a company develops in key operational areas- such as service, innovation, and others-that allow it to potentially vault past its competitors. A) Core competencies B) Opportunities C) Key success factors D) Mission statements Answer: A Diff: 2 Page Ref: 89 AACSB: Reflective Thinking Learning Obj.: 2 6) The relationship between core competencies and competitive advantage is best described by which statement? A) Strengthening a company's competitive advantage strengthens its core competencies. B) A company's core competencies become the nucleus of its competitive advantage. C) As a company's core competencies become stronger, its competitive advantage becomes weaker. D) There is no relationship between core competencies and competitive advantage. Answer: B Diff: 3 Page Ref: 89-80 AACSB: Analytic Skills Learning Obj.: 2 7) The key to entrepreneurial success over time is to build a competitive advantage. A) defensible B) sustainable C) coherent D) random Answer: B Diff: 3 Page Ref: 90-91 AACSB: Analytic Skills Learning Obj.: 2 8) A strategic plan serves as a blueprint to help a company to: A) match their company's strengths and weaknesses to the environment's opportunities and threats. B) accomplish its mission, goals, and objectives. C) identify a company's competitive advantage and set it apart from its competition with a unique position in the market. D) All of the above Answer: D Diff: 2 Page Ref: 92 AACSB: Analytic Skills Learning Obj.: 3 9) Which of the following is NOT a characteristic of the strategic management procedure for a small company? A) It should use a relatively short planning horizon-two years or less, typically. B) It should begin with an extensive objective-setting session. C) It should encourage the participation of employees and even outsiders to improve the reliability and creativity of the resulting plan. D) It should allow for flexibility and not be overly structured. Answer: B Diff: 2 Page Ref: 91-92 AACSB: Reflective Thinking Learning Obj.: 3 10) A clearly defined vision helps a company in which of the following ways? A) Provides direction B) Determines decisions C) Motivates people D) All of the above Answer: D Diff: 1 Page Ref: 92 AACSB: Reflective Thinking Learning Obj.: 3 11) A small company's mission statement: A) establishes its purpose in writing. B) gives the business and everyone in it a sense of direction. C) defines what the company is, why it exists, and its reason for being. D) All of the above Answer: D Diff: 1 Page Ref: 93 AACSB: Reflective Thinking Learning Obj.: 3 12) When developing a company's mission statement, an entrepreneur should remember to: A) write the statement alone without anyone else's interference. B) omit statements about her values because they may turn some stakeholders off. C) keep it short and simple. D) All of the above Answer: C Diff: 3 Page Ref: 93-94 AACSB: Communication Learning Obj.: 3 13) Strengths and weaknesses are to the organization. A) internal factors B) external factors C) internal and/or external factors D) factors not belonging Answer: A Diff: 1 Page Ref: 95 AACSB: Analytic Skills Learning Obj.: 3 14) are positive internal factors that contribute toward accomplishing the company's mission, goals, and objectives, while are negative internal factors that inhibit the accomplishment of a firm's mission, goals, and objectives. A) Strengths; weaknesses B) Weaknesses; strengths C) Opportunities; threats D) Threats; opportunities Answer: A Diff: 1 Page Ref: 95 AACSB: Analytic Skills Learning Obj.: 3 15) Kevin Abt noticed that people were cooking meals in their homes less often but wanted to avoid the hassle of going out to eat. They wanted to "eat in" without cooking. Abt launched a company, Takeout Taxi, that delivers restaurant-prepared food to his customers' homes and businesses. Takeout Taxi is the result of a(n): A) strength. B) weakness. C) opportunity. D) threat. Answer: C Diff: 2 Page Ref: 95-96 AACSB: Analytic Skills Learning Obj.: 3